Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver silver were trading weak on Friday, on the back of muted global cues. On Multi Commodity Exchange, gold October futures were ruling 60 points or 0.12 per cent down at Rs 49,923 per 10 gram, as against the last close of Rs 50,000. Silver December futures were trading Rs 78 down or 0.13 per cent down at Rs 57,949 per kg on MCX. Globally, yellow metal prices were flat as the dollar held close to its recent peak while the likelihood of more aggressive interest rate hikes by the U.S. Federal Reserve also weighed on the appeal for non-yielding bullion, according to Reuters. Spot gold was flat at $1,671.60 per ounce, and US gold futures ticked 0.1% higher to $1,682.80.
Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities
Gold has shown relative strength against rising US dollar and Treasuries. The US Dollar continues to trade near its highest level of 2002 and it seems gold is becoming immune to Fed’s hawkish stance. After strong recovery from Wednesday’s fall, gold continues to attract buyers around $1660-1650. Historically also after every Fed rate hike, gold has seen a relief rally and no fresh low after the event indicates gold is prime to move up. Indian rupee will also support gold in MCX and we would recommend gold to dip around 49700-49600 for long position intraday with stoploss of 49400 and expected target of 50100.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
Gold gained some momentum, but was flat as the dollar held close to its recent peak while the likelihood of more aggressive interest rate hikes by the U.S. Federal Reserve also weighed on the appeal for non-yielding bullion. Updates regarding Russia -Ukraine war is once again in highlights after President Putin’s comments regarding partial mobilization and also referendum in Ukraine this weekend supporting the safe haven assets. The dollar index was down 0.1%, but not far from a 20-year peak, while the U.S. 10Y yield continued to inch higher, currently hovering above the 3.7 mark, in the wake of a 75 bps rate hike by the U.S. central bank and its hawkish outlook. Many central banks raised their interest rates this week, following the U.S. Federal Reserve in the fight against inflation, which has been sending shockwaves through financial markets and the economy. On data front, number of Americans filing new claims for unemployment benefits increased moderately last week, indicating the labour market remains tight despite the Fed’s attempt to cool demand with aggressive rate hikes. Today the focus will be on the preliminary Manufacturing and Service PMI data expected from major economies and comments from Governor Powell. Broader trend on COMEX could be in the range of $1640-1695 and on domestic front prices could hover in the range of Rs 49,600-50375.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades marginally lower near $1678/oz weighed down by firmness in the US dollar and bond yields. The US 10-year yield has jumped to 2011 high in reaction to Fed’s aggressive monetary tightening stance however spread between 2-year and 10-year yield has narrowed. The US dollar is still near its 2002 high but has lost some momentum following Bank of Japan’s intervention in the currency market. Gold has weathered the central bank decisions and managed to hold above recent lows indicating that dip buyers have emerged however a sustained rise is unlikely until the US dollar corrects significantly.
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